SRC-TNM S.B. 528 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 528
By: Bivins
Intergovernmental Relations
4-23-97
As Filed


DIGEST 

Currently, the Texas Local Firefighters Retirement Act covers fire
fighters in 141 fire departments in mid-sized cities.  Each fire
department has its own retirement plan and invests its own funds.  The
board of trustees of each local retirement system can adopt or change
benefit and eligibility requirements as necessary.  S.B. 528 would allow
the board of trustees of paid and partly paid fire fighter retirement
systems to make retroactive changes to maintain a retirement plan's tax
status. 

PURPOSE

As proposed, S.B. 528 outlines provisions regarding the administration of
retirement systems for paid or partially paid firefighters. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 7(f), Article 6243e, V.T.C.S. (Texas Local Fire
Fighters Retirement Act), to prohibit a change or addition adopted under
this section from being applied retroactive to its effective date unless
required to maintain a retirement plan's tax qualification status. 

SECTION 2. Amends Section 19(a), Article 6243e, V.T.C.S., to provide that
the fire fighters' retirement system is governed by a board of trustees
consisting of, among others, two persons, rather than residents of the
municipality or other political subdivision, who are not officers or
employees of the municipality, in each municipality and other political
subdivision to which this Act applies and that has a fire department that
does not consist exclusively of volunteers. 

SECTION 3. Emergency clause.
  Effective date: upon passage.